
CLSA Sees 70% Upside in RIL Stock Amid New Energy Growth, Jio IPO & Solar Gigafactory Launch
Reliance Industries Ltd. (RIL) shares are currently trading at an attractive entry point, according to CLSA, which assigns an “Outperform” rating with a target of Rs 1,650. The brokerage sees significant upside potential, forecasting a 70% rally in RIL’s stock price under a blue-sky scenario, driven by the company’s expanding new energy business.
CLSA emphasized Reliance’s solar business, which is valued at over $30 billion based on the launch of its 20GW solar Gigafactory. The solar division, set to begin operations in the next 3-4 months, could generate an annual EBITDA of $1.7 billion over the next 4-5 years. Despite this, the market is currently overlooking the potential of RIL’s new energy initiatives, as the stock is priced as though the solar business holds no value.
The brokerage highlights that RIL’s solar Gigafactory will benefit from the company’s technology leadership and global partnerships. The Indian solar market is poised for significant growth, with India aiming to increase its solar capacity to 280GW by 2030, a key factor in boosting the sector’s growth.
CLSA notes that India’s solar exports are expected to surge, driven by tariff restrictions on Chinese solar products, opening up lucrative markets, particularly in the US. As a result, RIL’s solar unit stands to benefit from both domestic and international demand.
In addition to solar energy, CLSA also pointed out that other catalysts in 2025, such as the potential IPO of Reliance Jio Infocomm, the return of growth in retail, and the ramp-up of AirFiber subscribers, will further boost the company’s stock.
Despite a 1.17% drop in RIL shares on November 13, 2024, CLSA’s analysis suggests that RIL remains a strong investment due to its diversified business portfolio and future growth drivers in clean energy, telecom, and retail.